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Exercise 12-5 Net Cash Provided by Operating Activities [LO12-2] Changes in various accounts and gains and...

Exercise 12-5 Net Cash Provided by Operating Activities [LO12-2]

Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below:


  Item Amount                    
  Accounts receivable $ 73,000 decrease
  Inventory $ 117,000 increase
  Prepaid expenses $ 3,100 decrease
  Accounts payable $ 49,000 decrease
  Accrued liabilities $ 9,100 increase
  Income taxes payable $ 15,800 increase
  Sale of equipment $ 8,300 gain
  Sale of long-term investments $ 12,000 loss


Required:

For each item, indicate whether the dollar amount should be added to or deducted from net income under the indirect method when computing the net cash provided by operating activities for the year.
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